PRI

Primerica is a high-return, capital-light financial-services distributor: it sells term life insurance and investment/savings products to middle-income North American households through a large independent sales force. FY2025 was excellent — revenue rose 6.6% to $3.29B and net income jumped 59.7% to $751M, with diluted EPS up 67.1% to $22.91 (the EPS growth outpacing net income thanks to buybacks). Return on equity is a standout 30.7%, well above typical life insurers, reflecting the asset-light distribution model and growing investment-and-savings fee income.

The capital-return story is central. Primerica generated $901M of operating cash flow (+4.5%) and deployed it aggressively: $450M of buybacks (+5.9%) cut the share count 4.8% to 31.7M, plus $136M of dividends (+20.6%). That combination of high ROE and a shrinking share base is a powerful per-share compounding engine. The balance sheet leverage of 5.14x liabilities/equity is normal for an insurer, and equity grew 8.3% to $2.45B with $756M of cash.